South Korea’s Ministry of SMEs and Startups (MSS) has launched a major new smart safety tech program aimed at reducing workplace accidents in the small manufacturing sector. This initiative not only targets industrial safety improvements but also introduces fresh Korean startup opportunities, with a dedicated focus on digital safety technologies for factories employing fewer than 50 workers.
New Project Opportunities and Funding for Korean Startups
On July 22, 2025, the Ministry announced the Digital-based Industrial Accident Prevention Technology Development Project, a two-year R&D program exclusively designed for manufacturing SMEs with fewer than 50 regular employees. These small factories represent the highest-risk category in Korea’s industrial sector, accounting for over 80% of fatal workplace accidents, according to government data.
The program will select 20 projects, offering up to 660 million KRW (approximately 456,000 USD) per project. It is aimed to both reduce industrial accidents and accelerate the growth of smart safety tech program development—a sector where agile Korean startups are increasingly expected to play a pivotal role.
Korean SME Smart Factory Safety Solutions: Priority Areas for Technology Development
Participation is structured as a consortium model, where Korean startups or safety solution providers must partner with at least two small manufacturing SMEs (each with fewer than 50 employees).
Each consortium must submit a project proposal under one of the government’s four priority areas:
- Worker behavior-based accident prevention,
- Management of hazardous machinery and equipment,
- Response to fire, explosion, leakage, and suffocation hazards,
- AI-powered integrated safety management solutions.
A mandatory component of the program is on-site demonstration (field testing), which facilitates real-world validation of safety solutions in active manufacturing environments. This approach ensures that Korean SME smart factory safety solutions are both technologically sound and commercially scalable.
Linked to Government Safety Equipment Subsidy
In addition to R&D funding, the program is closely linked to the Ministry of Employment and Labor’s Smart Safety Equipment Distribution Project.
Therefore, the Korean SMEs planning to purchase this smart factory safety solutions project post-development will receive funding support up to 30 million KRW per SME.
This will then create an end-to-end path for startups: from R&D to testing, deployment, and eventual scaling through government-backed subsidy channels.
Building Momentum for Korean SME Smart Factory Safety Solutions
The announcement comes ahead of the 2026 expansion of the Serious Accident Punishment Act, which will apply to businesses with five or more employees.
As a result, demand for affordable, scalable safety tech program is expected to rise rapidly among SMEs.
“With 80% of fatal incidents in manufacturing sites occur in SMEs with fewer than 50 employees, it is urgent to develop and distribute industrial accident prevention products and smart factory safety solutions.
We will strive to promote the development of digital-based prevention technologies that can effectively reduce industrial accidents and contribute to enhancing the capabilities of developing corporations.”
Park Yong Soon, Director of Technology Innovation Policy at MSS.
How to Apply
Interested consortia can apply online through the Integrated Research Support System (IRIS) until August 22, 2025.
Detailed information on eligibility, evaluation, and submission requirements is available on the Ministry of SMEs and Startups website, and the Integrated Management System for Small and Medium Business Technology Development Projects (SMTECH) project management portal.
Keep tab on latest news in the Korean startup ecosystem & follow us on LinkedIN, Facebook, and Twitter for more exciting updates and insights.
